The nearly $500 million EG&G Inc. pension fund, Wellesley, Mass., is spinning off an estimated $170 million in pension assets to Bechtel Power Corp., San Francisco, said Steven R. Wasserman, EG&G director-investments and financial analysis. The move is a result of EG&G getting out of the Department of Energy's management and operations contracts. Bechtel won the contracts when they were re-bid. EG&G plans to transfer in April the assets in-kind in proportion to their asset allocation in the fund; the amount depends on completion of actuarial and asset valuations. The fund's allocation is 65% equities, including international, and 35% fixed income, real estate and other assets. EG&G plans to retain its 15 or so money managers, but with reduced assignments. Bechtel officials couldn't be reached for comment on whether Bechtel will continue with the managers and allocation after the transfer. Evaluation Associates is assisting EG&G with the change. Citibank is in the process of selecting investment managers to subadvise new multiple manager asset allocation funds. A spokesman said Citibank already has narrowed the list to final candidates for each asset class, and a decision will be made in two to three weeks. The new Packaged Solution funds are broken down into large-cap growth, large-cap value, small-cap growth, small-cap value and international. A portion of the funds will be invested in Citibank's proprietary Landmark funds, which have $5 billion in assets, mostly in fixed income. The Packaged Solution funds will be sold by Citibank's licensed bank sales representatives and through the bank's brokerage unit.